Week 2- Unit 2 = TECHNOLOGICAL CHANGE, POPULATION, AND GROWTH Flashcards
1
Q
Why do we need economic Models?
A
to see complex data in a simplified view
2
Q
What is an agent?
A
someone who makes an action or decision
3
Q
Ceteris paribus?
A
Holding everything constant
4
Q
Incentives definition?
A
economic rewards or punishments, which influence the benefits and costs of alternative courses of action.
5
Q
Economic rent definition?
A
the benefit received from a choice, taking into account the next best alternative (reservation option) ➢ Forms the basis of how we make choices.
6
Q
What is a good model?
A
clear
predicts accurately
improves communication
useful
